Auditor—inds district generally compliant under Kansas regulatory basis but flags activity/agency fund controls

External auditors presented the 2023–24 fiscal-year audit to the Seaman USD 345 board on April 14, telling trustees the district received an unmodified opinion under the Kansas regulatory (cash) basis of accounting while the audit report also noted a significant internal-control deficiency tied to activity and agency fund receipts.

The audit team explained that the district does not prepare GAAP-based financial statements; instead, Kansas school districts follow the state—ash-basis/regulatory accounting rules. Under that regulatory basis, the auditors said the district—inancial statements were materially accurate — commonly described as an unmodified or "clean" opinion for the regulatory basis. The auditors also reviewed federal programs and reported no findings for the major federal programs tested (Title I and special education).

Nut graf: The single notable internal-control finding involved incomplete documentation for activity and agency cash receipts held at school buildings and in student groups. Auditors said building staff did not consistently issue pre-numbered receipts and reconcile receipts to deposits; that shortcoming was flagged as a repeat finding but management presented an action plan and said training and mandatory receipt books have been issued.

What auditors told the board - Opinion: Adverse opinion relative to GAAP (because the district does not prepare GAAP statements) but an unmodified opinion on the Kansas regulatory basis of accounting. - Internal controls: No material weaknesses were reported, but 1 significant deficiency was identified related to activity/agency fund receipts and documentation. - Federal programs: Major programs tested (Title I; special education) yielded unmodified reports and no federal findings. - KPERS disclosure: The audit included a standard disclosure of the district llocation of the state pension system (KPERS) net pension liability; auditors noted the statewide shortfall amount disclosed to districts for informational purposes.

District response and next steps: The business office reported it has issued pre-numbered receipt books to buildings, provided training to building staff and drafted a corrective-action plan that the auditors included in the audit package. Auditors said the issue had improved compared with the prior year but still requires consistent practice across all buildings; the district pledged to continue working toward full compliance.

Provenance (excerpted evidence in the transcript): auditors identified the regulatory-basis opinion and then reviewed the schedule of funds and the significant deficiency related to agency funds and receipts.

Board context: Trustees discussed the corrective steps and asked for additional detail on the early-retirement payout schedule and how the district accounts for those future payment obligations in the regulatory-basis statements. The auditor explained those amounts are disclosed but not shown as a GAAP liability under Kansas law.